Ivernia Inc IVWFF

News

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From IVW Web site- Today. NEWS RELEASE All Dollar Amounts in U.S. Dollars Unless Otherwise Indicated IVERNIA INC. FINALIZES FINANCING ARRANGEMENT; SUPPORTED BY TWO OF THE LARGEST SHAREHOLDING GROUPS TORONTO, ONTARIO – April 12, 2007 –Ivernia Inc. (“Ivernia” or the “Company”) (TSX:IVW) has finalized the terms and participants of a new financing arrangement to fully repay all amounts outstanding under the Company’s existing BNP Paribas credit facility ($11 million - March 30, 2007) and Sentient Note ($16.5 million – April 29, 2007) and to provide funding during the Magellan mine previously-announced care and maintenance period. A syndicate of lenders, including two of the Company’s largest shareholding groups – The Sentient Group, and clients of investment advisor Ingalls and Snyder - will participate in the $50 million secured facility (the “Secured Facility”). This arrangement replaces the previously announced Senior and Junior Facilities committed to by Sentient. Financing Arrangements The Secured Facility will be used (i) for the repayment in full of the existing Sentient Note; (ii) for the repayment in full of the currently outstanding BNP Paribas credit facility and (iii) to assist with the Company’s overall funding requirements. The Secured Facility is expected to be available for drawdowns by April 27, 2007. The Secured Facility has a one-year term and bears an interest rate of 9.25%, which will accrue and be payable at maturity or earlier repayment. Approximately $32 million will be drawn down under the Secured Facility at closing, which will include concurrent payment of the BNP credit facility and Sentient Note. The Secured Facility grants first ranking security interests over all the Company’s assets. The arrangement is subject to the approval of independent shareholders at the Company’s 2007 annual and special meeting. Drawdowns under the Secured Facility entitle the lenders to conversion rights, providing for conversion of principal into Ivernia common shares at a price of C$1.20 per share. If Ivernia repays drawn balances before maturity the lenders will be issued warrants for the pro rata amount at a C$1.20 strike price that will expire concurrent with the maturity of the Secured Facility. Balances repaid before maturity may not be redrawn by Ivernia. Closing of the facility is expected to be before the end of April. If shareholder approval is not obtained, the facilities will bear an interest rate of 35% and will not be repayable for a two-year period. BMO Capital Markets acted as advisers to the Company on the transaction. Commentary Alan De’ath, President and CEO of Ivernia, commented, “We are pleased to have finalized this financing arrangement with these improved terms. Particularly significant to the Company is the support of two of its largest shareholding groups in backing the arrangements and providing Ivernia with the financial resources to manage its activities until the resumption of lead concentrate shipments.” “With this important funding in place, our management now has the flexibility to focus on obtaining the approvals necessary to resume shipments from the Magellan mine and continue the ramp-up of the world’s largest pure lead mine.”